by Welcome to our special update on our Nuestra Casa Fund (NCF) goal journey! After months of disciplined saving and unwavering determination, we’ve reached a significant milestone: we can finally afford a decent place where we might retire! Our commitment to saving cash for our future home has paid off, and we’re excited to share our progress with you.
The Power of Persistence: Meeting Our NCF Goal
As of last month, we not only met our NCF goal but did so ahead of schedule. When we started tracking this goal publicly, we had only 23% of the funds saved. Now, we’re thrilled to announce that we’re done! This achievement is like paying off a mortgage before retirement, but we’ve done it without ever taking on the debt.
| Month | Percent of Goal Met | Benchmark | Percent Increase Towards 100% |
|---|---|---|---|
| January 2017 | 23.9% | 23.9% | N/A |
| February | 25.1% | 26.5% | 1.2% |
| March | 28.5% | 29.2% | 3.4% |
| April | 28.8% | 31.8% | 0.3% |
| May | 30.2% | 34.5% | 1.4% |
| June | 39.1% | 37.1% | 8.9% |
| July | 46.1% | 39.8% | 7% |
| August | 49.1% | 42.4% | 3% |
| September (new increased target) | 78% | 77.2% | 28.9% |
| October | 80.5% | 79.3% | 2.5% |
| November | 82% | 81.4% | 1.5% |
| December | 85.1% | 83.6% | 3.1% |
| January 2018 | 84.9% | 85.7% | -0.2% |
| February | 84.6% | 87.8% | -0.4% |
| March | 85.9% | 89.9% | 1.5% |
| April | 86.2% | 92% | 0.3% |
| May | 88% | 94.2% | 1.8% |
| June | 100%!!! | 96.3% | 12% |
While we’ll continue to rent for at least a couple more years, both in the states and abroad, we no longer have to worry about how we’d pay for a house without depleting our Freedom Fund. This accomplishment means we can forge our own path to homeownership because we dared to do things differently.
Our Savings Strategy: Balancing Frugality and Enjoyment
Our approach to saving for this goal was rooted in our habit of saving as much as possible. Instead of setting a small percentage for savings and allocating the rest to spend, we didn’t limit our savings rate. Our philosophy is simple: if an item doesn’t add value to our lives or bring happiness, we don’t buy it. This mindset naturally prevents us from buying more than we need.
However, it’s crucial to note that we didn’t deprive ourselves while trying to reach our goal. For us, enjoying the journey is just as important as reaching the destination. After achieving financial independence, we seamlessly transitioned to the house savings goal, shifting our focus while maintaining our momentum.
From Rags to Riches: Our Financial Journey
Sometimes, we look at each other and marvel at how we’ve made it from rags to riches. Step by step, we got here, and winning the lottery had nothing to do with it. By the time we retire, we’ll have enough for a house and sufficient investments to withdraw an annual income of $38,000-$41,000.
It feels surreal to be in this position. Just eight years ago, I had a negative net worth and couldn’t imagine achieving these financial goals. The truth is, money doesn’t discriminate based on skin color, race, or background. Wealth stays with those who know how to take good care of it.
Is Saving to Fully Fund a Home Purchase for Everyone?
While saving 100% of the payment isn’t feasible for everyone, there are valuable lessons in our approach:
- Aim to bring as much of the down payment as possible to closing.
- Try to avoid Private Mortgage Insurance (PMI), which is a waste of money.
- Focus on increasing your income and lowering your spending.
- Invest wisely and let compound interest work its magic.
Our Criteria for Buying vs. Renting
We follow specific criteria when deciding whether to buy or rent:
- We consider the likelihood of living in one property for more than five years.
- We evaluate the cost of housing near work and compare it to renting.
- We assess our employment stability.
- We ensure we can afford all expenses on a single salary.
Looking Ahead: Travel and Exploration
With our NCF goal met, we’re excited about the next chapter in our lives. We’re looking forward to exploring the world for months at a time, and we’ve already started drafting a tentative itinerary that involves at least six months of traveling between a few continents.
Final Thoughts
The Power of Financial Discipline and Persistence
Our journey from negative net worth to complete home funding proves that building wealth isn’t about luck or privilege—it’s about consistent, intentional choices. By spending less than we earned, putting our money to work through investments, and letting compound interest do its magic, we achieved what many consider impossible. The key wasn’t just mathematical; it was about fundamentally changing our relationship with money and questioning traditional financial wisdom.
Beyond the numbers, this journey taught us that financial freedom is built on simple but powerful principles: question every expense without depriving yourself, let your future goals guide your present decisions, and stay patient even when progress feels slow. Success doesn’t require a genius-level strategy—it requires unwavering commitment to your financial goals and the courage to chart your own path, even when it differs from societal norms.
As we look ahead to our travels and next chapter in life, we’re reminded that true wealth isn’t just about having money in the bank—it’s about having options and the freedom to choose your path. Whether you’re starting with negative net worth like we did or you’re already on your way, the same principles apply. The question isn’t whether you can achieve financial freedom, but rather when you’ll start your journey. Share your thoughts and goals in the comments below as you begin or continue your own path to financial independence.
Our journey demonstrates that you don’t need to be a genius to become wealthy. By spending less than you make, putting your money to work for you, and letting investments do the compounding magic, you can achieve your financial goals.
